Recast Financial Statement
Objective of Report
This report has been assigned by the University of Western Sydney to analyse strategic review for Premier Investment Ltd that was introduced in 2011in relation to its wide cost efficiency program and long term gross margin expansion program. The comparison analysis of 2011 and 2012 for Premier will be performed to examine the success of strategic review. Finally, there will be an identification of any red flags that might be highlighted in ratios analysis from Premier recast financial statements.
Executive Summary
This report examined the performance of Premier Investment Limited for 2012. Firstly, the income statement and the balance sheet were recast and justified using additional information available in financial statement footnotes. Secondly, an investigation and estimates of profitability and financial strength of Premier are discussed. The Results of data analysed show mix ratios. Most of this ratios showed strengths compared to previous year. The analysis result indicated Premier’s performance has improved in comparison to previous year. However, day’s inventory and asset utilization show poor position.
Cost of goods sold includes costs incurred in bringing product to its present location and conditions. They are raw materials, finished goods and work-in-progress, purchasing department’s freight, handling and warehouse costs incurred to deliver the goods to the point of sale (Premier, note 2(j)).
Selling general and administrative expenses includes item that are related to continuing operation these including Employee expenses, Operating lease rental expense, Advertising and direct marketing (Premier, note 5).
Other Income includes Membership program fees, dividends, Amortisation of deferred income, gain on financial instruments, Royalty and licence fees, and other income not directly related to continuing operations (Premier, note 4).
Investment income includes share of loss in its investment in associate (not 14).
Other
This report has been assigned by the University of Western Sydney to analyse strategic review for Premier Investment Ltd that was introduced in 2011in relation to its wide cost efficiency program and long term gross margin expansion program. The comparison analysis of 2011 and 2012 for Premier will be performed to examine the success of strategic review. Finally, there will be an identification of any red flags that might be highlighted in ratios analysis from Premier recast financial statements.
Executive Summary
This report examined the performance of Premier Investment Limited for 2012. Firstly, the income statement and the balance sheet were recast and justified using additional information available in financial statement footnotes. Secondly, an investigation and estimates of profitability and financial strength of Premier are discussed. The Results of data analysed show mix ratios. Most of this ratios showed strengths compared to previous year. The analysis result indicated Premier’s performance has improved in comparison to previous year. However, day’s inventory and asset utilization show poor position.
Cost of goods sold includes costs incurred in bringing product to its present location and conditions. They are raw materials, finished goods and work-in-progress, purchasing department’s freight, handling and warehouse costs incurred to deliver the goods to the point of sale (Premier, note 2(j)).
Selling general and administrative expenses includes item that are related to continuing operation these including Employee expenses, Operating lease rental expense, Advertising and direct marketing (Premier, note 5).
Other Income includes Membership program fees, dividends, Amortisation of deferred income, gain on financial instruments, Royalty and licence fees, and other income not directly related to continuing operations (Premier, note 4).
Investment income includes share of loss in its investment in associate (not 14).
Other